The stock market regulator has rejected bond issuance proposals worth Tk 2,100 crore from several banks that had earlier received no-objection certificates from the Bangladesh Bank (BB).

At its core, banking is about pricing and managing risk. Trouble begins when risk is quietly recycled within the system rather than reduced or spread adequately across the board. In trading bonds, that is increasingly what is happening in the country’s banking sector.

The trading of treasury bonds in the stock exchange of Bangladesh has remained low although eight months have passed since their debut on the secondary market, owing largely to higher transaction costs and a lack of awareness among individual investors.

Investing in the bond market of Bangladesh can be a great way for beginners to diversify their investment portfolio and earn a steady income.   

Banks in Bangladesh are already in a tight liquidity situation since they have to buy US dollars at higher rates to settle import bills. 

The government finally takes initiative to develop a bond market in the country.